81R8026 MCK-F
By: Geren H.B. No. 2105
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of certain licensing agents; providing
penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 2, Alcoholic Beverage Code, is amended by
adding Chapter 7 to read as follows:
CHAPTER 7. LICENSING AGENTS
SUBCHAPTER A. GENERAL REQUIREMENTS
Sec. 7.001. DEFINITIONS. In this chapter:
(1) "Department" means the Texas Department of
Licensing and Regulation.
(2) "Licensing agent" means a person who assists
another person in obtaining or renewing a license or permit issued
under this code or otherwise represents a person before the
commission with respect to a license or permit issued under this
code.
Sec. 7.002. APPLICABILITY OF CHAPTER. This chapter does
not apply to:
(1) an attorney licensed in this state;
(2) a person who holds a license or permit issued under
this code or an employee of a person who holds a license or permit
issued under this code acting on behalf of the license or permit
holder; or
(3) an applicant for a license or permit issued under
this code or an employee of an applicant for a license or permit
issued under this code acting on the applicant's own behalf.
[Sections 7.003-7.050 reserved for expansion]
SUBCHAPTER B. POWERS AND DUTIES
Sec. 7.051. LICENSING AGENT TRAINING COURSE. (a) The
commission shall establish a licensing agent training course. The
course must include, at a minimum, instruction regarding:
(1) all permits and licenses issued by the commission
and the activities authorized for each permit and license; and
(2) the procedures for filing permit and license
applications with the commission.
(b) The commission shall teach the training course at least
four times each year in different locations throughout the state.
(c) The commission shall charge a fee to each individual
taking the course. The commission shall adopt the course fee in an
amount that in the aggregate is sufficient to cover the cost of
teaching the course.
Sec. 7.052. INVESTIGATION OF COMPLAINTS. The executive
director of the department shall, on the written complaint of a
person aggrieved by the action of a licensing agent, investigate an
alleged violation of this chapter by a licensing agent or an
applicant.
[Sections 7.053-7.100 reserved for expansion]
SUBCHAPTER C. LICENSING
Sec. 7.101. LICENSE REQUIRED. A person may not act as a
licensing agent unless the person holds a license issued under this
chapter.
Sec. 7.102. ELIGIBILITY FOR LICENSING AGENT LICENSE. A
person is eligible for a licensing agent license if the person:
(1) is at least 18 years of age;
(2) is a citizen of the United States or a legal alien;
and
(3) has completed a training course approved by the
department or commission.
Sec. 7.103. PERSON INELIGIBLE FOR LICENSE. The department
may not issue a licensing agent license to a person who has a
substantial ownership interest in any permit or license issued
under Title 3.
Sec. 7.104. APPLICATION FOR LICENSE. An applicant for a
license under this chapter must:
(1) submit an application on a form provided by the
department; and
(2) include with the application the application fee
set by the department.
Sec. 7.105. CRIMINAL HISTORY RECORD INFORMATION FOR LICENSE
APPLICANTS. (a) An applicant for a license under this chapter must
submit to the department, in addition to satisfying the other
requirements of this subchapter, a complete and legible set of
fingerprints, on a form prescribed by the department, for the
purpose of obtaining criminal history record information from the
Department of Public Safety and the Federal Bureau of
Investigation.
(b) On receipt of an application for a license under this
chapter, the department shall conduct a criminal background check
on the applicant.
(c) An applicant is not eligible for a license under this
chapter if the applicant has not fully completed the terms of the
applicant's sentence after having been finally convicted of a
misdemeanor involving moral turpitude or a felony.
Sec. 7.106. LICENSE ISSUANCE. The department shall issue a
license under this chapter if the department determines that the
applicant:
(1) has paid the license fee set by the department; and
(2) qualifies to be licensed under this chapter.
Sec. 7.107. LICENSE NOT REQUIRED FOR CERTAIN EMPLOYEES. An
employee of a licensing agent who only performs administrative
duties is not required to hold a license under this chapter.
[Sections 7.108-7.150 reserved for expansion]
SUBCHAPTER D. LICENSE EXPIRATION AND RENEWAL
Sec. 7.151. LICENSE EXPIRATION. (a) A license issued under
this chapter expires on the second anniversary of the date the
license is issued. The department by rule may adopt a system under
which licenses expire on various dates during the year.
(b) A person may not engage in activities that require a
license if the person's license has expired and is not renewed as
provided by this subchapter.
Sec. 7.152. LICENSE RENEWAL. (a) A person may renew an
unexpired license by paying the required renewal fee to the
department before the expiration date of the license.
(b) At least 30 days before the expiration of a person's
license, the department shall send written notice of the impending
license expiration to the person at the person's last known address
according to the department's records.
(c) A person whose license has been expired for 90 days or
less may renew the license by paying to the department a renewal fee
that is equal to one and one-half times the normally required
renewal fee.
(d) A person whose license has been expired for more than 90
days but less than one year may renew the license by paying to the
department a renewal fee that is equal to two times the normally
required renewal fee.
(e) A person whose license has been expired for one year or
more may not renew the license. The person may obtain a license by
complying with the requirements and procedures for obtaining a new
license.
(f) On receipt of an application to renew a license issued
under this chapter, the department may conduct a criminal
background check under Section 7.105.
[Sections 7.153-7.200 reserved for expansion]
SUBCHAPTER E. PRACTICE OF LICENSING AGENT
Sec. 7.201. COLLECTION OF LICENSE AND PERMIT FEES. (a) All
permit or license fees collected by a licensing agent on behalf of
another person must be paid by check made payable to the appropriate
state or local governmental authority.
(b) A licensing agent shall deposit all license and permit
fees collected by the agent with the appropriate state or local
governmental authority not later than the 90th day after the date
the licensing agent receives the fee.
[Sections 7.202-7.250 reserved for expansion]
SUBCHAPTER F. INSURANCE REQUIREMENTS
Sec. 7.251. ERRORS AND OMISSIONS POLICY REQUIRED. The
holder of a licensing agent license shall file with the department
an errors and omissions insurance policy insuring the applicant
against liability for damage to persons occurring as a result of
actions performed in the course of business as a licensing agent.
Sec. 7.252. POLICY TERMS AND CONDITIONS. An insurance
policy filed under this subchapter must be in an amount set by the
department that is not less than $25,000 for each injury with a
minimum total aggregate of $75,000 for all injuries. The
department shall set the amount of insurance required under this
section on a sliding scale based on the licensing agent's volume of
business.
Sec. 7.253. POLICY APPROVAL. The department shall adopt
rules governing the requirements for the insurance policy required
by this subchapter.
[Sections 7.254-7.300 reserved for expansion]
SUBCHAPTER G. DENIAL OF LICENSE AND DISCIPLINARY PROCEDURES
Sec. 7.301. DENIAL OF APPLICATION; SUSPENSION OR REVOCATION
OF LICENSE. The department may deny an application for a license or
suspend or revoke the license of a licensing agent for:
(1) violating this chapter or a rule adopted under
this chapter;
(2) obtaining a license through false or fraudulent
representation;
(3) making a substantial misrepresentation in an
application for a licensing agent license;
(4) engaging in a continued and flagrant course of
misrepresentation; or
(5) failing to account for or remit, within a
reasonable time, money belonging to another that is in the
licensing agent's possession, commingling money of another person
with the licensing agent's money, or failing to keep the money of
another person in an escrow or trust account.
Sec. 7.302. HEARING BY STATE OFFICE OF ADMINISTRATIVE
HEARINGS. (a) Before denying an application for a license or
suspending or revoking a license, the department must:
(1) set the matter for a hearing to be conducted by the
State Office of Administrative Hearings; and
(2) before the hearing date, notify the applicant in
writing of:
(A) the charges alleged or the question to be
determined at the hearing; and
(B) the date and location of the hearing.
(b) At a hearing under this section, the applicant may:
(1) be present and be heard in person or by counsel;
and
(2) have an opportunity to offer evidence by oral
testimony, affidavit, or deposition.
(c) Written notice may be served by personal delivery to the
applicant or by certified mail to the last known mailing address of
the applicant.
[Sections 7.303-7.350 reserved for expansion]
SUBCHAPTER H. CRIMINAL PENALTIES
Sec. 7.351. PRACTICING WITHOUT LICENSE; OFFENSE. (a) A
person commits an offense if the person acts as a licensing agent
without a license.
(b) An offense under this section is a Class B misdemeanor.
Sec. 7.352. GENERAL CRIMINAL PENALTY. (a) A person commits
an offense if the person violates a provision of this chapter or a
rule adopted by the department under this chapter for which a
penalty is not provided.
(b) An offense under this section is a Class C misdemeanor.
SECTION 2. On or before November 1, 2009, the Texas
Department of Licensing and Regulation shall adopt all rules
necessary to implement Chapter 7, Alcoholic Beverage Code, as added
by this Act.
SECTION 3. A person is not required to hold a license under
Chapter 7, Alcoholic Beverage Code, as added by this Act, before
January 1, 2010, to engage in activity regulated by that chapter.
SECTION 4. (a) Except as provided by Subsection (b) of this
section, this Act takes effect September 1, 2009.
(b) Sections 7.101, 7.351, and 7.352, Alcoholic Beverage
Code, as added by this Act, take effect January 1, 2010.